IKEA accelerates investments to ensure it is climate positive by 2030
Ahead of the UN Climate Change Conference (COP25) event in Madrid, Inter IKEA Group have announced they will invest €200 million to speed up the transformation to becoming a climate positive business.
From this week, representatives of Governments and businesses from around the world will gather in Madrid for the UN Climate Change Conference (COP25). The event brings together those working to implement the Paris Agreement and develop solutions to address the escalating climate crisis.
As a business committed to leaving the world in a better state than it is today and to underline a commitment to being truly people and planet positive, representatives of Inter IKEA Group – the owner of the IKEA Concept and the worldwide IKEA franchisor – will attend and participate in COP.
Ahead of the event Inter IKEA Group have announced they will invest €200 million to speed up the transformation to becoming a climate positive business. More than half of the IKEA climate footprint comes from materials in the products and production.
The investments will be divided into two, the first will support the ambition to use 100% renewable energy (electricity, heating, cooling and other fuels) across the value chain and in production, by 2030. It will be built on collaboration with direct suppliers.
The second, will invest in projects aimed at removing and storing carbon through reforestation and responsible forest management. Wood is one of the main materials that IKEA uses and for many years IKEA has worked to promote responsible forest management around the world. Responsibly managed forests play a vital role in protecting ecosystems, supporting biodiversity and climate change mitigation.
The projects in the second strategy will be built in collaboration with partners to achieve scale and maximum impact. The projects will consider the wider aspect of land use and include activities to combat deforestation and support restoration of degraded land. According to the IPCC, global greenhouse gas emissions would be heavily reduced if deforestation was stopped.
Announcing the investments, Torbjörn Lööf, CEO at Inter IKEA Group, said “Our ambition is to reduce more greenhouse gas emissions in absolute terms by 2030 than the entire IKEA value chain emits, while growing the IKEA business. To reach this goal, we will continue to invest in areas that create impact. This investment will speed up the transition to using renewable energy across our supply chain and remove carbon from the atmosphere through reforestation and better forest management practices”
“By taking responsibility and working together we can make a true change. We have a long-term perspective and the financial strength to invest in activities that will benefit both the planet and our own business future,”
Lena Pripp-Kovac, Chief Sustainability Officer, Inter IKEA Group, said “We believe that the best way to minimise our climate impact and to contribute to limiting climate change to 1.5°C is mainly by reducing our greenhouse gas emissions - but we also need to remove existing carbon from the atmosphere. We can make a positive difference through our integrated supply chain, our global presence and our forest and climate expertise.”
Inter IKEA Group will lead and participate in several events and panels throughout COP25, covering issues as diverse as what it means to be climate positive, the role of the food chain within the climate agenda, and land use and biodiversity.
Inter IKEA Group consists of three core businesses: Franchise, Range & Supply and Industry. This includes developing, designing and producing IKEA home furnishing solutions, supplying products to IKEA’s 13 franchisees and as a manufacturer of IKEA’s wood-based products,
IKEA Ltd. (UK and Ireland), operates IKEA’s UK retail business, including 22 IKEA stores, three Order and Collection Points and two Planning Studios, and is part of Ingka Group, the largest of the IKEA franchisees.